Filing Bankruptcy as part owner of a lake house

[Done]

Hi all, I need to file bankruptcy. The problem is that I am co owner of a lake cottage with 4 of my siblings . It was signed over to us by my Mom before she died.
I have talked to a couple of lawyers and they were saying I could qualify for a chapter 7 , until they found out my name was on the deed for the lake cottage. That is the only asset I have. I am $70,000 in debt, the estimated value of the cottage is $300,000. but that is owned by 5 people. So my asset value would be about $60,000. The lawyer I talked to said that if I filed chapter 13 I would have to pay back at least $60,000 of my debt because that is what my asset is. He said that probably won't be doable.

What other options do I have? The lawyer asked if my brother and sisters would buy my share of the cottage, but that isn't going to happen, I don't want to ask them to come up with $60,000 for something I got myself into.

If I file chapter 7 the bankruptcy court could put a lien on my share of the cottage or could force the sale of the cottage to get the money for my creditors.
I don't want to do something that would make my family lose the cottage that has been in the family for 100 years.

[despritfreya]

Welcome to the Forum.

If the property is not exempt (sounds like the attnys are telling you it is not exempt) the Chapter 7 Trustee has a duty to liquidate the asset. He/she has the authority under 11 USC 363 to sell the co-owners' interest as well. The net proceeds will be split between all owners with your portion used to pay your creditors. If you don't want the property sold, you have to find a way to settle with the Trustee. Co-owners buying out the bk estate's interest is one way. Coming to an agreement with the Trustee as to what your share is worth and you finding a way to pay that amount to the Trustee is another.

Other options could be:
1. As the attnys have suggested, file Chapter 13 and agree to pay the non-exempt value to your creditors over 3 to 5 years.
2. Find a way to avoid bk.

Keep us posted.

Des.

[Done]

Thank you for your reply, I had talked online with another attorney on another forum and he said I am what they call " Too broke to be broke"
I really don't have an option that doesn't include the chance of losing the summer cottage my family owns.

I was thinking of another option. I am 61 and if I can keep up with the payments until i am 65 I can just stop making payments when I retire and start collecting Social security and my pension, since then I will be judgement proof.

I was really hoping to file bankruptcy to get this mess sorted out before I retire, since I haven't been able to save any money for retirement.

The thing that sucks is I never wanted to have my name on the deed to the cottage , my mother and sisters went to the lawyer and they put me on the deed without asking me, just assumed I would want to be part owner.